UK parliamentary committee chair Chi Onwurah is urging the Competition and Markets Authority to utilize the Digital Markets, Competition and Consumers Act to challenge Apple and Google's app store duopoly. The call focuses on addressing 30% commission fees and anti-steering policies that restrict developer choice and impact market competition.
Aggressive enforcement of the DMCCA would fundamentally alter the unit economics for streaming services operating in the UK. By removing the 30% commission and allowing direct steering to web-based payment systems, platforms could reclaim significant margin currently lost to platform fees. This shift challenges the gatekeeper status of mobile OS providers, potentially forcing a pivot toward more open distribution models across the broader European market. Watch for the CMA's upcoming decision on steering consultations to see if the regulator shifts from voluntary commitments to mandatory enforcement actions.
The broader EU digital regulation strategy continues to influence how national regulators like the CMA approach platform oversight and competition enforcement.
Chi Onwurah, chair of the parliamentary science committee, is urging the CMA to regulate Apple and Google app stores. The move aims to dismantle the current duopoly and 30% commission fees. This matters because it could save British consumers millions and fundamentally alter unit economics for streaming services operating in the UK.
Onwurah is seeking to challenge the Apple and Google duopoly, specifically targeting their 30% commission fees and anti-steering policies that cost British consumers approximately £700 million each year.
The 'app tax' refers to the hidden costs passed on to consumers through app store commissions. British households with four smartphone users pay an average of £55 per year due to these fees.
The Digital Markets, Competition and Consumers Act of 2024 provides the necessary legal framework for the CMA to enforce binding changes on app store operators.
Current anti-steering rules prevent developers from informing their users about cheaper subscription options that exist outside of the official Apple and Google app stores.
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